A business law blog published by the business lawyers at AttorneyBritt - Gary L. Britt, CPA, J.D. Commentary and information regarding the laws and regulations applicable to individuals, corporations, partnerships, and limited liability companies (LLCs); as they relate to the myriad of business transactions, contracts, and agreements every business owner, shareholder, member, physician, and/or health care provider must consider.

2. Exemptions Cut Income. There are two types of
exemptions. The first type is a personal exemption. The second type is
an exemption for a dependent. You can usually deduct $4,000 for each
exemption you claim on your 2015 tax return.

3. Personal Exemptions. You can usually claim an
exemption for yourself. If you’re married and file a joint return, you
can claim one for your spouse, too. If you file a separate return, you
can claim an exemption for your spouse only if your spouse:

Had no gross income,

Is not filing a tax return, and

Was not the dependent of another taxpayer.

4. Exemptions for Dependents. You can usually claim
an exemption for each of your dependents. A dependent is either your
child or a relative who meets a set of tests. You can’t claim your
spouse as a dependent. You must list the Social Security number of each
dependent you claim on your tax return. For more on these rules, see IRS
Publication 501, Exemptions, Standard Deduction, and Filing
Information. Get Publication 501 on IRS.gov. Just click on the Forms & Pubs tab on the home page.

6. Some People Don’t Qualify. You normally may not
claim married persons as dependents if they file a joint return with
their spouse. There are some exceptions to this rule.

7. Dependents May Have to File. A person who you
can claim as your dependent may have to file their own tax return. This
depends on certain factors, like total income, whether they are married
and if they owe certain taxes.

8. No Exemption on Dependent’s Return. If you can
claim a person as a dependent, that person can’t claim a personal
exemption on his or her own tax return. This is true even if you don’t
actually claim that person on your tax return. This rule applies because
you can claim that person as your dependent.

9. Exemption Phase-Out. The $4,000 per exemption is
subject to income limits. This rule may reduce or eliminate the amount
you can claim based on the amount of your income. See Publication 501 for details.

10. Try the IRS Online Tool. Use the Interactive Tax Assistant tool on IRS.gov to see if a person qualifies as your dependent.
Each and every taxpayer has a set of fundamental rights they should be aware of when dealing with the IRS. These are your Taxpayer Bill of Rights. Explore your rights and our obligations to protect them on IRS.gov.

About Me

AttorneyBritt - Gary L. Britt, CPA, J.D. is both a lawyer and Certified Public Accountant (CPA). I have over 30
years of experience helping individuals, businesses, and business
owners manage, structure, and govern their business transactions,
prepare and negotiate their contracts and agreements, protect their
assets, and successfully transfer their wealth to future generations. Contact AttorneyBritt at 512-481-2886 or by email at info@AttorneyBritt.com. I
understand that when people hire an attorney, they are often
experiencing very stressful situations. These people need someone who
cares about them. I make sure
our clients not only receive high-quality legal services, but also the
support and resources they deserve. I take your
customer experience serious. In a hectic world, I will be
there to help you make informed decisions about your individual and
business problems. See what makes Gary L. Britt, CPA, J.D. a better
choice for your legal needs.